Teekay Tankers (NYSE:TNK – Get Free Report) and Cheniere Energy Partners (NYSE:CQP – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 46.5% of Cheniere Energy Partners shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Cheniere Energy Partners pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. Cheniere Energy Partners pays out 56.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Tankers has increased its dividend for 2 consecutive years.
Risk and Volatility
Valuation & Earnings
This table compares Teekay Tankers and Cheniere Energy Partners”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay Tankers | $951.80 million | 3.42 | $351.19 million | $16.97 | 5.55 |
| Cheniere Energy Partners | $11.50 billion | 2.66 | $2.99 billion | $5.51 | 11.47 |
Cheniere Energy Partners has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than Cheniere Energy Partners, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Teekay Tankers and Cheniere Energy Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
| Cheniere Energy Partners | 27.31% | 1,121.60% | 14.59% |
Analyst Recommendations
This is a breakdown of current ratings for Teekay Tankers and Cheniere Energy Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay Tankers | 1 | 3 | 3 | 1 | 2.50 |
| Cheniere Energy Partners | 5 | 3 | 1 | 0 | 1.56 |
Teekay Tankers presently has a consensus target price of $77.00, indicating a potential downside of 18.23%. Cheniere Energy Partners has a consensus target price of $62.00, indicating a potential downside of 1.91%. Given Cheniere Energy Partners’ higher probable upside, analysts clearly believe Cheniere Energy Partners is more favorable than Teekay Tankers.
Summary
Teekay Tankers beats Cheniere Energy Partners on 11 of the 18 factors compared between the two stocks.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
About Cheniere Energy Partners
Cheniere Energy Partners, L.P., through its subsidiaries, provides liquefied natural gas (LNG) to integrated energy companies, utilities, and energy trading companies worldwide. The company owns and operates natural gas liquefaction and export facility at the Sabine Pass LNG Terminal located in Cameron Parish, Louisiana. It also owns a natural gas supply pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. The company was founded in 2003 and is headquartered in Houston, Texas. Cheniere Energy Partners, L.P. is a subsidiary of Cheniere Energy, Inc.
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